1. Relationships
between Activities
• A project is a sequence of activities.
– Large projects have interrelated sequences.
• These are called Precedent activities
– They must be defined before the project
begins.
2. Step 2
Develop a Network Model
• A Network Diagram visually displays the interrelated
activities using nodes (circles) and arcs (arrows) that
depict the relationships between activities.
• It is a graphical diagram.
• Two types of Graphical Network Models
– Activity On Arc (AOA)
– Activity On Node (AON) (We will use AON)
3. Two Types
of Network Models
Activity-on-Arc (AOA)
Time Time Time
Activity D Activity E
Activity-on-Node (AON)
Activity Activity
We will use
D E this!
Link
5. Precedent
Relationships
Precedent relationships determine a sequence for accomplishing activities.
They specify that any given activity cannot start until its preceding activity or
activities have been completed.
Activity On Node approach
In our AON approach, the nodes (circles)
represent activities, and the arcs AON
represent the sequential relationships
between them.
S T U
Nodes are simplified in the following examples.
“S” precedes “T” which precedes
“U”
6. Activity Relationships
S & T must be completed T & U cannot begin until S
before U can be started. has been completed.
S T
U S
T U
7. Activity Relationships
U cannot begin until S & T have been
U & V can’t begin until S & T completed. V cannot begin until T has
have been completed. been completed.
S U S U
T V T V
8. Activity Relationships
T & U cannot begin until S has been
completed; V cannot begin until both T & U
have been completed.
S T V
U
9. St. Adolf’s Hospital
(A sample project)
Immediate
Activity Description Predecessor(s) *Responsibility
A Select administrative and medical staff. — Johnson
B Select site and do site survey. — Taylor
C Select equipment. A Adams
D Prepare final construction plans & layout. B Taylor
E Bring utilities to the site. B Burton
F Interview applicants and fill positions in A Johnson
nursing, support staff, maintenance,
and security.
G Purchase and take delivery of equipment. C Adams
H Construct the hospital. D Taylor
I Develop an information system. A Simmons
J Install the equipment. E,G,H Adams
K Train nurses and support staff. F,I,J Johnson
*We won’t be using the “Responsibility” data, but it is important in project management.
10. St. Adolf’s Hospital
Diagramming the Network
Activity Times
(wks)
Immediate I
Predecessors
A – 12 A F K
B – 9
C A 10
D B 10 Start C G Finish
E B 24
F A 10
G C 35 B D H J
H D 40
I A 15
J E,G,H 4 E
K F,I,J 6
11. St. Adolf’s Hospital
I
Paths are sequences of activities
between a project’s start and finish.
A F K
Path Time (wks)
Start C G Finish
A-I-K33
A-F-K28
B D H J
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43
E
12. St. Adolf’s Hospital
The longest path is the critical path!
I
Path Time (wks) A F K
A-I-K33
A-F-K28 Start C G Finish
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43 B D H J
Project Expected
Time is 69 wks. E
13. 3. Develop the schedule
• Now we insert the time estimates.
– This is where we distinguish between PERT & CPM.
• CPM is used when activity times are Certain.
• It is Decision making under Certainty
• You are certain of the time each activity will require to
complete.
• PERT is used when activity times are not certain.
(Decision making under risk)
14. Using PERT
• PERT is used when activity times are uncertain.
– Decision making under risk (“P” for probabilistic)
– Three time estimates are required for each activity.
• OPTIMISTIC TIME: Best time if everything goes perfectly
• REALISTIC TIME: Most likely time
• PESSIMISTIC TIME: A worst-case situation
B + 4M + P
Expected Time = -------------------
6
In this example, the most likely time is given a weight of 4, and the other two times (pessimistic
and optimistic) are each given weights of 1. Software allows you to change these as needed, but
the denominator must be the total of the weights given.
15. St. Adolf’s Hospital
Developing the schedule
• Earliest Start Time (ES) for an activity is the earliest finish time
of the immediately preceding activity.
• Earliest Finish Time (EF) for an activity is its earliest start time
plus how long it takes to do it (estimated duration).
• Latest Start Time (LS) is the latest you can finish the activity
minus the activity’s estimated duration.
• Latest Finish Time (LF) is the latest start time of the activity that
immediately follows it. (Latest start and finish times for each activity
are computed starting at the project’s last activity completion time
and working forward.)